MPIC expects P11.5-B net income this year

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THE Metro Pacific Investments Corp. (MPIC), headed by Manuel V. Pangilinan, hopes to earn P11.5 billion in net profits in 2016, which will be 11.6 percent higher than 2015 net profits.

The company made this optimistic forecast on Wednesday as half-year net earnings surged to 6.6 billion, up 13 percent from the first half of 2015.

MPIC board declared an interim dividend of 3.20 centavos per common share, or a payout ratio of 15 percent, unchanged from last year.

“The strong results during the first half of the year reflect our ongoing expansion of investment, continuing improvements on service levels and efficiency as well as financial gains for our operating companies,” s aid Pangilinan.


“All our businesses,” he added, “are fully focused on service quality and operational efficiency, while at the same time growing our sales and core profitability to improve the lives of all our customers.”

David Nicol, MPIC’s chief financial officer, noted that the firm has set aside P58 billion in capital expenditures for the year, lower than the P70 billion it had previously announced. Bulk of this capital spending will be infused to the company’s power assets and toll-road business.

The core net Income, the company said, was bolstered by strong traffic growth on all the roads that Metro Pacific Tollways Corp manages and operates as well as contributions from Subic-Clark Tarlac Expressway and CII Bridges and Roads Investment Joint Stock Co. in Vietnam.

MPIC’s increased interest in Beacon Electric Asset Holdings Inc. and Global Power also helped to beef up its earnings.

Its Manila Electric Co. made 11 percent increase in energy sales, while Maynilad reported about 4 percent increase in billed volume in its water business, and toll-road business revenues increased by 21 percent.

In terms of contribution to the company’s net operating income power distribution and generation accounted for 52 percent or P4.2 billion of the aggregate contribution.

Meanwhile, Maynilad and toll-roads each contributed P1.8 billion or 22 percent of the total, the hospital group contributed P249 million or 3 percent of the total and the rail and systems contributed P116 million or 1 percent of the total.

MPIC is also said to be actively pursuing its plan to expand its toll-way business overseas, particularly in Indonesia and Malaysia, amid “several opportunities abroad.

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